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View Diary: How "ObamaCare Cancelled Your Plan" is really an Insurance Co Scam to Rip You Off (131 comments)

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  •  Vyan - and the overwhelming majority, (2+ / 0-)
    Recommended by:
    annecros, nextstep

    and probably nearly all, Pre-ACA individual plans didn't have those required elements. So the notion that plans could routinely qualify for grandfathered status was false. And that meant that most individual plan holders were going to have to buy a plan that had the 10 required ACA minimum features and be more expensive. Don't you think the President had an obligation to tell the public that in 2010, rather than if you like your plan you can keep it?

    "let's talk about that"

    by VClib on Mon Nov 04, 2013 at 09:06:54 AM PST

    [ Parent ]

    •  Not really. (5+ / 0-)

      I don't really know what the percentages are on those plans that don't meet the Grandfathering requirements - and I don't think Obama knew that either.  It's not common knowledge.

      Just checking on it now I find there was a Kaiser Foundation Study via Wapo that showed that in 2011 the Majority of Workers in the Individual Market were in Grandfathered Plans (56%) which could have continued even after 2013.

      That proportion has declined to 36%, but not because the plans fail to meet the Grandfather exception, it's because the Insurance Industry has begun phasing those plans out since they aren't going to be allowed to since up anyone new to them.

      Some of these plans have stuck around for a little bit. The health law allowed plans that existed back in March 2010, when it became a law, to keep selling coverage. These are known as "grandfathered plans:" They don't meet the health law's requirements, but as long as they don't change much, insurers can keep offering them.


      These cancellations are, essentially, a lot of grandfathered plans exiting the insurance marketplace. From an insurance company's vantage point, grandfathered plans are a bit of a dead end: They can't enroll new subscribers and are really constrained in their ability to tweak the benefit package or cost-sharing structure. There's not a whole lot of business sense, for a managed care company, in maintaining a health plan that doesn't meet the health law's new requirements.

      This is the Insurance Companies Choice not something that ObamaCare forced on them.  They could keep them going if they wanted to, the law specifically allows them to, they just Won't.


      •  I think the data you quote may be for group plans (0+ / 0-)

        and the WashPost used the same KaiserNews source that I had in my comment.

        "let's talk about that"

        by VClib on Mon Nov 04, 2013 at 10:22:21 AM PST

        [ Parent ]

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